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Why the Market Dipped But Visa (V) Gained Today

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In the latest trading session, Visa (V - Free Report) closed at $278.54, marking a +0.79% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 2.12%. Meanwhile, the Dow experienced a drop of 1.51%, and the technology-dominated Nasdaq saw a decrease of 3.26%.

Heading into today, shares of the global payments processor had gained 7.77% over the past month, outpacing the Business Services sector's gain of 7.58% and the S&P 500's gain of 5.78% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.58, showcasing a 10.73% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $9.49 billion, up 10.24% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.92 per share and revenue of $35.8 billion. These totals would mark changes of +13.11% and +9.64%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Visa presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Visa is presently trading at a Forward P/E ratio of 27.86. For comparison, its industry has an average Forward P/E of 16.58, which means Visa is trading at a premium to the group.

Meanwhile, V's PEG ratio is currently 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.3 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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